The Development and Application of a Group Decision Model Using Fuzzy Logic: The Case of Consumer Attitudes Towards Risk

Summary


Quality junction deployment (QFD) is a method for incorporating customer preferences into the design of product or services. It requires that consumer preferences, established through market research, be categorized and products or services then developed whose attributes match or fit these preferences. A problem here is that preferences can only be established imprecisely, itself a consequence of the fact that customers have different attitudes (optimistic, pessimistic) towards the risks involved in buying services or products. To deal with this problem, the present study develops a group decision making model using fuzzy logic-for establishing customer preferences. It then applies the model to QFD to the case of customers with optimistic (high risk) and pessimistic (low risk) attitudes in buying services or products. At this example five customers and a group of seven managers rated the importance of the key variables in the model. These ratings provided input into the model which was then used to calculate optimal decisions under different conditions. The results suggest that the model can be useful in these general circumstances.

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The Development and Application of a Group Decision Model Using Fuzzy Logic: The Case of Consumer Attitudes Towards Risk

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1. Introduction

To increase customer satisfaction, organizations should always try to improve their processes and products through a variety of methods [5, 15]. Quality function deployment (QFD) is a customer-driven quality system for meeting customer requirements and improving their satisfaction with an organization's products and services [3, 22, 23]. The idea behind the system or method philosophy is to 'translate' customer attitudes-towards particular services or products into measures that organization can then use or employ at each stage of the operations or production cycle to 'end up with satisfied customers [4, 12, 20]. Typically, QFD is composed of four aspects or phases; product planning, parts deployment, process planning, and ...

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